Affärsmöjligheter genom att ta risker i din IT investering Jean-Peter.Fendrich@volvo.com

2. Di Strategisk IT konferens 2014 Affärsmöjligheter genom att ta risker i din IT investeringJean-Peter.Fendrich@volvo.com

3. Prototyping for innovation • Hands on proof of concepts Small scale  Big impact

4. Ärdetbara IT? • “Försvarets IT-system blev en halvmiljarddyrare” • “Datafiasko – Dyrtförförsäkringskassan” • “Denver flygplats – 16 månaderförsenad”

5. Ärdetbara IT? • “Storabristeripolisensnyadatasystem” • “Polisensmobilautredningsstöd, PUST, fungerarinte trots uppgradering” • “Polisenskrotarpåkostatdatasystem”

6. ”When the rate of change outside an organisation is greater than the rate of change inside the end is near” Jack Welch Chairman and CEO of General Electric 1981 - 2001

7. Volvo IT - Tech Watch & Business Innovation

8. What we do Inspire strategic change through the use of collaborative platforms and methods that stimulates creativity and idea generation Identifyingemerging IT trends, creating scenarios and spreading the information to all cornersof the Volvo Group Exploring new business concepts through close collaboration and co-creation with customer, end-users and technology providers

9. Tech Watch Business Innovation Prototypes

10. GDP: -2 to ZeroManaging the Early Phases of Innovation & Opportunity Development Proactive Generative Development $ -2 to 0 0 to 9 The Volvo Group needs to create an arena whereby the selected and known strategies can be challenged with more radical internal and external ‘unknowns’.

11. Where we interactFrom the Board Room to the Factory

12. What we do – the Tech Watch Hands on proof of concepts • Long Term Plan • Webinars • Seminars • Technology Outlook • Presentations, Articles • Volvoitblog.com • Lyon • Beijing • Gothenburg • Gartner, Forrester etc • Universities • Innovation Pioneers network • Internet scanning • Scouting

13. Identifying technologies and trends

14. Cross fertilizationWhat can we learn from other industries and across the Volvo Group?

15. Prospect Prototype Pilot Project EG Gx FDG Business Innovation Prototype Business Innovation Prototypes A alternative between pre-studies, 30.000 feet vision statements and large, complex projects. We focus on a relevant question, close cooperation and TimeBox to reach business value

16. Business Innovation Prototype • Understand (business, users and technology) • Focus on the sweet spot (Process and technology) • Insights through hands on experience (what solution would be – desirable, feasible, viable) • Assess – Co-financing sponsors decide on the next step • Transfer and Communicate – Quick transfer and broad communication

17. Thinking in three dimensions - Does the solution show empathy for end-users? - Is this the simplest solution that gets the job done? - Is it elegant? - Is it useful? - Can we afford it? - Does it make me more profitable? - Do we have the skills? - What is my ROI? desirability human needs viability business needs feasibility technical needs - How quickly can I configure the solution to suit my needs? - Is the solution easy to maintain? - Is it consistent with my current system landscape? - Can the solution be easily supported?

18. Prototype vs typical project Risk Don’t do it! Prototype area Well, maybe Project Classic Project area Potential Value

19. Our playfield - Where we should be working Radical Semi -Radical New Knowledge/Technology/Application Incremental Semi -Radical Existing Existing New Business Model, Processes & User

20. It is not a project! Prototyping Project • No cleardeliverables, just ideas • Cost/Time-box • Embrace Risk, Challenge! • Fail fast/Failcheap • Never aim for production • If youare not thereyoudon’tknow A completly different mindset • Clearly defined deliverables • Control Quality, Cost and Time • Reduce/control risk • Ensure success • For production

21. 3 months – fast enough or long enough? The “standard” product is a 3 months work process with some specific characteristics: • Always co-financed with a customer normally 50/50 • Always dual prototype leadership (one from TWBI and one from the customer) • Always involving end users in both pre-process and setup • Aim for 3 months • Never business as usual…

22. Do we have enough risk level? Stops at prototype stage. Knowledge gained Created new business We have developed appr. 80 prototypes in total Used partly, as a basis for a major input to altered roadmaps or strategies

23. Lean startup

24. Business innovation prototypes Salesman assessment Serious Leap Green Commuting Connected Mechanic Road mapper, 3RM A CO2 pedometer that promotes environmental friendly commuting Game based assessment of behavior A game that teaches LEAN principles Real-time video support for service technicians Animated service instructions in the pocket Location basedassembly Video support Secure documents iParts Track & Trace Location based assembly instructions Animated road maps for easier collaboration DRM based access control Device independent parts catalogue Track and trace of deliveries through drivers mobile

25. Our approach • Short cycles • Low level investments • High risk – untested area – unsecure result • Multidisciplinary • Global

26. Our contribution • We are able to use new technique in the business 2-3 years before it should have been used otherwise. • We are able to stop new technique that is not ready. • We generate knowledge that change roadmaps and strategies.

27. Thanks for your attention